Directors Loan

[edgewooddrive]

Hi

I hope someone can assist me please as i need a question answered quite urgently. The CEO of the company I am with asked one of the directors to take out several loans to assist the company.He has contacted loan companies and taken these loans out in his own name to the value of £17,000.
The CEO of the company has the bank accounts and we are not allowed to see what is in them but he says that there is no way that this can be paid back as the company has not got the money to pay this back. This has put our director in financial problems as he is paying the money back himself to avoid any problems. The director has furnished the CEO with the paperwork but he refuses to acknowledge the amounts given.
The question is what recourse does he have in regard to this. Is there any legal liability for the company to ensure that this money is paid back to him and is there anything he can do.

Hope someone can answer this

Regards
Paul

[tom 7000]

He made a loan...theres no agreement. This means its unsecured and repayable on demand. All he has to do is ask for it back, when the boss refuses then he has to take legal action against the company and get a county court judgement against it....etc etc Alternatively you could cut that step out and go straight for a statutory demand - see limk below

http://www.insolvencyhelpline.co.uk/legal_issues_explained/statutory_demand.php

Rule no 37 ...never lend to a company unless you own 51% of the shares...still its not too much of an expensive lesson...its not like he took a 300k remortgage on his home...